Victoria’s regulatory environment for controlling tobacco and e‑cigarettes has evolved but more work is required to significantly strengthen legislative and regulatory framework. 

This Inquiry discovered that current regulatory frameworks are no longer fit for purpose and lag behind: 

• consumer trends 
• global developments
• release of new nicotine products heavily promoted by the tobacco industry 
• the illicit market and activities of serious and organised crime, often based off‑shore.

This report makes 27 recommendations that build on the experience of local stakeholders and other jurisdictions. At its centrepiece, the establishment of a Victorian nicotine licensing scheme and active regulatory authority, sitting within the Department of Justice and Community Safety.

Key findings

• The benefits from the decline in tobacco use are under pressure from the increase in vaping, with estimates of over 500,000 regular and non‑regular users aged over 14 years in Victoria (as of March 2023).
• The tobacco market in Victoria for 2023 is estimated at $6.0 billion. The vape market is estimated to be worth between $332 million and $545.8 million.
• Since 2003 the World Health Organisation has recommended the establishment of tobacco licensing scheme as have local public health experts. The Victorian Government announced that it will establish a wholesale and retail tobacco licensing scheme in late 2024.